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Mortgage to buy half a house

  • 26-05-2024 12:39pm
    #1
    Lynnington3
    Registered Users, Registered Users 2 Posts: 182 ✭✭


    is it possible to get a mortgage to buy someone out of half their share of a house ?

    house was left to two people , one has no interest , one does but no funds to buy them out. Could their partner buy the other person out of their share with a mortgage ? (Not enough money in savings to buy outright)



Comments

  • #2
    zg3409
    Registered Users, Registered Users 2 Posts: 7,037 ✭✭✭zg3409


    Should not be an issue. Bank will want full deeds in case mortgage is never paid. Person with mortgage can give lump sum to other person.

    Possible issues, deeds, clear ownership, wills etc.

    Person applying for mortgage may not be eligible to get a mortgage depending on amount, their age, income etc.

    If you intend renting out house and not living there beware taxes, rent increase rules and tax rules may make this a bad idea.

    Other issue is interest rates are high, so cost of mortgage may be high especially over years and if it's rented out the profit may not cover interest payments, as in overall it may be losing money.

    Should be easy enough for solicitor and person offering home loans to answer, however you probably need a clear cost benefit analysis from an accountant before taking on a loan you dont necessarily need and if you could sell house for cash that might be better long term .

    Aldo look into inheritance tax rules and it varies depending on relation to person who died. I would say thread carefully and if you have half the value of a house to invest, getting a loan may not be best long term investment. May be better to sell house, take thd cash and invest in shares or bonds etc. The interest cost will be a big factor as in you could be losing 7% per year of your potential money.



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